HQ 0224629 - Application for Further Review of Protest 3303-93-100003; Rescission of Protest Approval; 19 U.S.C. 1501; 19 CFR 173.3 - United States International Trade Commision Rulings

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HQ 224629

August 17, 1993

LIQ-9-02 CO:R:C:E 224629 SLR

CATEGORY: LIQUIDATION

District Director of Customs
300 Second Ave. S.
P.O. Box 789
Great Falls, MT 59405

RE: Application for Further Review of Protest 3303-93-100003; Rescission of Protest Approval; 19 U.S.C. 1501; 19 CFR 173.3

Dear Sir:

The above-mentioned protest was forwarded to this office for further review. We have considered the points raised and our decision follows.

FACTS:

Between June 27 and December 4, 1991, the subject importer entered various merchandise, claiming duty rates of either free or 1.5 percent ad valorem. Between January 24 and February 21, 1992, however, Customs liquidated the merchandise at the rate of 10 percent ad valorem. On April 22, 1992, the importer protested the liquidations, and on June 4, 1992, the protest was approved. On August 7, 1992, the subject entries were reliquidated and duty refunds were generated to the importer. Thereafter, on October 16 and 23, 1992, Customs reliquidated the entries again, this time at the higher rate. The importer presently protests this decision. The protest is dated January 13, 1992, and thus was timely filed. The protestant claims that your office "re-reliquidated" the entries illegally, without authority under law or regulation and more than 90 days after their original liquidation. You insist that the "re-reliquidations" were perfectly lawful as they were made within 90 days of the August 7, 1992 reliquidation date.

ISSUE:

Whether Customs "re-reliquidation" of the entries was improper.

LAW AND ANALYSIS:

Section 501 of the Tariff Act of 1930, as amended (19 U.S.C. 1501) and section 173.3 of the Customs Regulations (19 CFR 173.3) authorize the district directors to reliquidate entries voluntarily within 90 days from the date on which notice of the original liquidation was given to the importer, his consignee or agent. The purpose of voluntary reliquidation is to enable Customs officers to correct errors in the appraisement, classification, liquidation or reliquidation of the merchandise within the specified time period; prior to the enactment of this provision, some of these issues could only be resolved in court. H.R. Rep. No. 91-267, 91st Cong., 2nd Sess., reprinted in 1970 U.S. Code Cong. & Admin. News 3188, 3212. More than one voluntary reliquidation is permitted under this section, however, no adjustments may be made more than 90 days after notice of the original liquidation has been given. The only exception is in the case of fraud under 19 U.S.C. 1521.

Here, the subject entries were originally liquidated between January 24 and February 21, 1992. Clearly Customs "re-reliquidation" of the entries on October 16 and 23, 1993, occurred well beyond 90 days of the original liquidations. Customs "re-reliquidation" of the entries was improper under 19 U.S.C. 1501, and this protest should be allowed in full.

Customs has ruled that a district director can rescind a protest approval but only before the subject entries have been reliquidated pursuant to that approval. HQ 221723 dated March 26, 1991; HQ 222005 dated April 26, 1991.

HOLDING:

Customs "re-reliquidation" of the subject entries was improper. You are to allow the protest in full. A copy of this decision should be sent to the protestant along with the Form 19 Notice of Action.

Sincerely,

John Durant, Director
Commercial Rulings Division

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